Midway Gold
Finalizes Joint Venture with Barrick at Spring Valley Project, Nevada
Midway Gold Corp. (?Midway?) is
pleased to announce that it has signed a definitive agreement with Barrick
Gold Exploration Inc., a wholly owned subsidiary of Barrick Gold Corporation
(NYSE:ABX, TSX:ABX) for an exploration agreement and option to joint venture
Midway?s Spring Valley gold project, Pershing County, Nevada.
?This agreement represents a milestone in the
development of Spring Valley and fulfills our goal to advance the project
towards a production decision,? said Alan Branham, President and CEO of Midway Gold Corp. ?We
believe that Barrick has the capability to develop Spring Valley into a
producing mine. As evidenced by our recent updated resource estimate, the
deposit continues to expand. Barrick has been an excellent partner by
investing $12.3 million in equity placements in Midway since 2006 and by
providing technical advice as we have expanded the discovery. They are one of
Midway's largest shareholders at 8.48 per cent. This partnership leverages
our $24.0 million investment in the project and will benefit our shareholders
through Barrick?s extensive Nevada operation expertise in one of the large
new Nevada discoveries of recent years.?
The parties have settled on terms granting Barrick the exclusive right to
earn a 60% interest in the project by spending US$30,000,000 on the property
(US$4,000,000 guaranteed in the first year) over five years. Barrick may
increase its interest by 10% (70% total) by spending an additional
US$8,000,000 in the year immediately after vesting at 60%. At Midway?s
election, Barrick may also earn an additional 5% (75% total) by carrying
Midway to a production decision and arranging financing for Midway's share of
mine construction expenses with the carrying and financing costs plus
interest to be recouped by Barrick once production has been established.
Midway will coordinate geologic and administrative activities during the
earn-in period for a negotiated administrative fee.
Spring Valley is a porphyry/diatreme hosted gold system beneath pediment
gravels. An updated Canadian NI 43-101 compliant inferred resource of 87.75
million tons grading 0.021 ounce per ton gold (opt) for a total of 1,835,615
ounces using a cut-off grade of 0.006 opt gold was reported on March 3, 2009.
A technical report supporting that resource will be available on Sedar within
45 days of that date.
Midway Gold Corp. is a precious
metals exploration company, listed on the NYSE Alternext US and on the TSX
Venture Exchange under the symbol ?MDW.? Midway?s focus is creating value for
shareholders through the discovery and development of quality new precious
metal resources in politically stable mining areas. Additional information
about Midway Gold Corp. can be found at: www.midwaygold.com.
This release has been reviewed and approved by Alan Branham (MSc. and CPG), a
?qualified person? as that term is defined in National Instrument 43-101.
ON BEHALF OF THE
BOARD
?Alan Branham?
______________________________
Alan Branham, President
and CEO
For further information, please contact
R.J. Smith at Midway Gold Corp. at (877) 475-3642
(toll-free).
The TSX Venture
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this release. This press release contains forward-looking
statements about the Company and its business. Forward looking statements are
statements that are not historical facts and include resource estimates. The
forward-looking statements in this press release are subject to various
risks, uncertainties and other factors that could cause the Company's actual
results or achievements to differ materially from those expressed in or
implied by forward looking statements. These risks, uncertainties and other
factors include, without limitation risks related to fluctuations in gold
prices; uncertainties related to raising sufficient financing to fund the
planned work in a timely manner and on acceptable terms; changes in planned
work resulting from weather, logistical, technical or other factors; the
possibility that results of work will not fulfill expectations and realize
the perceived potential of the Company's properties; uncertainties involved
in the interpretation of drilling results and other tests and the estimation
of gold resources; the possibility that required permits may not be obtained
on a timely manner or at all; the possibility that capital and operating
costs may be higher than currently estimated and may preclude commercial
development or render operations uneconomic; the possibility that the estimated
recovery rates may not be achieved; risk of accidents, equipment breakdowns
and labor disputes or other unanticipated difficulties or interruptions; the
possibility of cost overruns or unanticipated expenses in the work program;
and other factors identified in the Company's SEC filings and its filings
with Canadian securities regulatory authorities. Forward-looking statements
are based on the beliefs, opinions and expectations of the Company's
management at the time they are made, and other than as required by
applicable securities laws, the Company does not assume any obligation to
update its forward-looking statements if those beliefs, opinions or
expectations, or other circumstances, should change.
This press release uses the terms "measured resources",
"indicated resources" and "inferred resources", which are
calculated in accordance with the Canadian National Instrument 43-101 and the
Canadian Institute of Mining and Metallurgy Classification system. We advise
investors that while those terms are recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not recognize
them. U.S. investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into reserves. In
addition, "Inferred resources" have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian rules,
estimates of Inferred Mineral Resources may not form the basis of feasibility
or pre-feasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that part or all of an inferred resource exists, or
is economically or legally minable.
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